INTRODUCTION:

HUMAN RESOURCE MANAGEMENT:

Modern organizational setting is characterized by constant changes relating to environmental

factors and human resources. as regards environmental factors, we find changes in the operating
organizational structure, the networking procedures, customs or norms and the economic,
political and social patterns in which organizations exist. moreover, there is constant change in
human resources. new individuals are being employed with their new ideas and expectations
while the existing workforce is constantly changing vis-à-vis ideas, attitudes and values.

Although the change may provide solution to some problems, it may create several new ones.
there is an urgent need to understand these problems, anticipate them and to find solutions to
them. the responsibility to find out solutions to these problems lies with every manager who has
to be prepared to deal with different changes effectively through educational and developmental
programmes. obviously, every manager is responsible for management of human resources – of
course with the advice and help of personnel department. management of human resources is the
essence of being a manager who has to get things done through others. specifically, his task
relates to leading, mobilizing and directing the efforts of people without which he can be a
technician but not a manager. thus, every manager has to develop and maintain his competence
in managing human resources which have assumed utmost significance in modern organizations.
DEFINITION OF HRM:

Human Resource Management is management functions that helps manager's recruit, select, train
and develop members for an organization. it focuses on the people in organization.

SCOPE OF HRM:

The scope of HRM is indeed vast. all major activities in the working life of a worker –from the
time of his or her entry into an organization until he or she leaves –come under the purview of
HRM. Specifically, the activities included are- HR planning, job analysis and design, recruitment
and selection, orientation and placement, training and development, performance appraisal and
job evaluation, employee remuneration, motivation communication, welfare, safety and health,
industrial relations and the like.

For the sake of convenience all these functions into seven sections as shown in the figure.
H. R .M. FUNCTIONS

Diagram

Prospects of HRM Nature of

HRM

Industrial Employee Hiring

Relations Human
Resource

Employee and
Employee
Executive
Maintenance
Remuneration

Employee Motivation
SUPPORTING FUNCTIONS

HR PLANNING
ASSESSMENT
SELECTION
PLACEMENT
TRAINING AND DEVELOPMENT
APPRAISAL
COMPENSATION
EMPLOYEE RELATION
BENEFITS
UNION MANAGEMENT

OBJECTIVES OF HRM:

SOCIETAL OBJECTIVES: - To be ethically and socially responsible to the needs and

challenges of the society while minimizing the negative impact of such demands upon the
organization.

ORGANIZATIONAL OBJECTIVES: - To recognize the role of HRM in bringing about

organizational effectiveness. HRM is only a mean to assist the organization with its objectives.

PERSONAL OBJECTIVES: - To assist employees in achieving their personal goals enhance

the individual’s contribution to the organization. personal objectives of employees must be met if
workers are to be maintained, retained and motivated. otherwise, employee performance and
satisfaction may decline and employees may leave the organization.
COMPENSATION MANAGEMENT

• Compensation provided to employees can direct in the form of monetary benefits

and/or indirect in the form of non-monetary benefits known as perks, time off, etc.

• Compensation does not include only salary but it is the sum total of all rewards and
allowances provided to the employees in return for their services.

Elements of executive compensation

 Higher managerial post like presidents, vise-presidents, directors, general manager etc

 The managerial remuneration of such positions comprises of 4 elements . They are –

1. Salary
2. Bonus
3. Long Term Incentive
4. perquisites

Components of Compensation System

Compensation systems are designed keeping in minds the strategic goals and business objectives.
Compensation system is designed on the basis of certain factors after analyzing the job work and
responsibilities. Components of a compensation system are as follows:
• Job analysis
• Salary structures
• Pay structure
Need of Compensation Management

A good compensation package is important to motivate the employees to increase the

organizational productivity.

Unless compensation is provided no one will come and work for the organization. Thus,
compensation helps in running an organization effectively and accomplishing its goals.
Salary is just a part of the compensation system, the employees have other psychological and
self-actualization needs to fulfill. Thus, compensation serves the purpose.

The most competitive compensation will help the organization to attract and sustain the best
talent.

The Compensation Package should be as per industry standards.

INTRODUCTION OF COMPENSATION MANAGEMENT

Compensation Management is an integral part of the management of the organization.

Compensation is a systematic approach to providing monetary value to employees in exchange
for work performed. Compensation may achieve several purposes assisting in recruitment, job
performance, and job satisfaction. To be effective, the managers must appreciate the value of
competitive pay, their human resources, and have an investment view of payroll costs. It is of
prime importance for an organization to maintain pay levels that attract and retain quality
employees while recognizing the need to manage payroll costs.

The literal meaning of compensation is to counter-balance. In the case of human resource

management, compensation is referred to as money and other
Benefits received by an employee for providing services to his employer. Money and benefits
received may be in different forms-base compensation in money and various benefits, which
may be associated with employee's service to the employer like provident fund, gratuity,
insurance scheme and any other payment which the employee receives or benefits he enjoys in
lieu of such payment.

"Compensation includes direct cash payments, indirect payments in the form of employee
benefits and incentives to motivate employees to strive for higher levels of productivity”

Compensation is a tool used by management for a variety of purposes to further the existence
and growth of the company.

OBJECTIVE

This project attempts to understand the objectives:-

 To understand in details how to establish pay rates to different level of employee.

 To understand the impact of compensation management on performance level.

SCOPE

The scope of this project is to study of the compensation management strategies in Elavin Infra
Projects and to evaluate the behaviour & performance of employee on their work.

RESEARCH DESIGN

INTRODUCTION

A Research Design is the framework or plan for a study which is used as a guide in collecting
and analyzing the data collected. It specifies the methods and procedures for acquiring the
information needed to conduct the research effectively.
RESEARCH METHODOLOGY

TYPE OF DATA COLLECTED

There are two types of data used. They are primary and secondary data. Primary data is defined
as data that is collected from original sources for a specific purpose. Secondary data is data
collected from indirect sources.

PRIMARY SOURCES

Questionnaire consists of a set of questions presented to respondents. Because of its flexibility, it

is by far the most common instrument used to collect primary data.

SECONDARY SOURCES

These include books, the internet, the company website etc,

SAMPLING PLAN:

 Owing to the large number of employees to be introduced to elicit their opinions on the

effectiveness of Information present and required both personnel and organization

programs and time constraints have forced to opt for the method of sampling instead of

consensus.

 The process of Convenience Simple Random Sampling is used to select the respondents,

to provide for equal probability in the selection of respondents.

SAMPLE SIZE: I have selected support division to conduct the research consisting of 50

employees of various divisions of Elavin Infra Projects The following data explains about the
sample size taken to conduct the research i.e.: to total no of employees in supports division 50

employees.

SAMPLE DESIGN: The usual approach is to draw inferences based on sampling about the

parameters of population from which the samples are taken.

This sampling design is determined before any data is collected the researcher

adopted simple random sampling techniques for this study, the simple random sampling refers to

that sampling in which each every unit of the population as an equal opportunity of being

selected in the sample.

QUESTIONNAIRE: There was a closed ended type of questionnaire followed

LIMITATIONS OF STUDY

Everything has some pros and cons and so certain limitations of this study that we could observe
are as follows:

The area of project work is manfacturing sector so, the data or result may be approximate as the
conclusion is based on the survey method i.e. primary & secondary source (filling of
questionnaire from the employees) may be hypothetical (imaginary) data.

 The organizations which have been studied and surveyed are not providing us with full
information which has hampered the result and conclusion.
 Exact data was not been provided